Published on November 14, 2016 9:19 am, by Pete Lalor
ASIC has investigated the lending practices of Cash Converters and found many instances where Cash Converters have not made suitable inquiries into customer’s income and expenses. This has led to credit being extended to people where credit legislation would deem it to be unsuitable.
If you or somebody you knew took out a small loan online through Cash Converters between 1 July 2013 and 30 June 2016 you or they may be eligible for a refund. The circumstances where a refund might apply is where a customer had taken out 2 or more small loans in the 90 days preceding taking another small loan online during this period.
Cash Converters failed to check whether customer’s had the income required to service a loan. Rather they applied benchmark figures that weren’t necessarily related to the individual client’s circumstances. Lenders have obligations they are required to meet to ensure the extension of credit is repayable by the client and Cash Converters haven’t met their obligations in these instances.
Cash Converters have agreed to refund $10.8million across 128,000 contracts and have been fined a further $1.35 million by ASIC for 30 infringements under the National Consumer Protection Act 2009.
For clients who believe they have entered into a loan credit contract with Cash Converters that shouldn’t have been approved, you can contact the Credit and Investments Ombudsman to lodge a complaint. Read more about payday lending why it is a concern.
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Peter is the CEO of MoneyBrilliant. He has over 20 years experience in banking, insurance and accounting. Peter has three sons, ranging in age from 16 to 3, is a sport and fitness fanatic and a volunteer firefighter. He is passionate about improving people's lives through making financial services more accessible.